Bermuda-based Apex Fund Services has become the first fund administrator to secure approval to open up in Dubai.

However contrary to Dubai news reports, Apex is only setting up a subsidiary office in the Dubai International Financial Centre (DIFC). It will maintain its headquarters in Bermuda.

Fund administration is just beginning to open up in the Middle East, a region which is poised to have the world?s highest growth rate of high net worth individuals at rate of nine percent per year, according to The Merrill Lynch/Cap Gemini High Net World Wealth Report 2005.

Managing director Peter Hughes said Apex was ?keen? to be the first administrator to establish itself in DIFC.

He expects it to be a key domicile for the global funds industry as a result of DIFC?s new Collective Investment Law 2006, which is the first regulatory framework for the funds industry.

Since the Dubai Financial Services Authority is recognised by the UK Financial Services Authority and the US Securities and Exchange Commission, funds domiciled in DIFC will be able to market themselves internationally.

Currently 15 asset management firms have licenses to operate from the DIFC. Three funds have applied for licenses under the Collective Investment Law 2006.